Getting an Auto Loan with Bad Credit

 

The first step in getting a car loan with bad credit is to be realistic. Many car shoppers get frustrated when trying to find a car with bad credit because expectations are set too high with respect to how much money a bank will lend them. Also, keep in mind that when buying a car with bad or poor credit that some car dealerships will hold paper or finance the vehicle for you.

Lastly, very seldom will a dealership let someone with bad credit finance a new or used car with no money down or a zero deposit.

Seek out car dealerships that specialize in bad credit poor credit financing. The banks and lenders these dealerships work with are better prepared to help poor credit - bad credit car shoppers. They may also be more flexible with regard to down payment and requirements than traditional banks. On the down side, expect to pay a higher interest rate for a bad credit car loan than a shopper with great credit.

Once you've located a car dealer you want to work with they will ask you to bring in copies of a paycheck, drivers license, electric bill, phone bill, or other bill that validates employment and your residential address. In addition to these items you'll need copies of a bank statement, car insurance, and personal references. In some cases with car shoppers that do not have a personal checking account, some lenders will accept a debit card account.

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